RBI Dividend

The government is facing a Budget deficit of as high as 7 per cent of gross domestic product, the widest in more than two decades, according to some estimates.

Data available on the RBI's website shows that, as of April 1-June 21, the RBI has purchased more than Rs 1.3 trillion in government bonds

Experts say while the decision is positive, it may not make any significant contribution

News on why the government wants Rs 10,000 crore as interim dividend from the central bank and is going easy on telecom companies that owe it dues.

The fresh call comes just months after the Reserve Bank of India (RBI) approved a 1.76 trillion rupees ($24.8 billion) dividend payment to the federal government

Central bank may done away with provisioning requirements, to enable higher transfer of surplus in the 2017-18 fiscal, analysts say

The global financial services major DBS, however, noted that interests in this paper is likely to be lukewarm ahead of the new 10Y issuance in September or October

Analysts say lacklustre tax collections and weak growth which is threatening the fiscal deficit target of 3.3 per cent of GDP are some of the reasons that will limit the government's spending power

RBI's payout will help the govt

The dividend transfer will help the Centre meet its revised fiscal deficit target of 3.4% of GDP for FY19

The decision was taken at the meeting of the RBI's Central Board

Budget for 2019-20 estimates to get Rs 82,911 cr through dividend from banks, financial institutions and the RBI next financial year

The RBI follows July-June financial year

In August, RBI had paid a dividend of Rs 306.59 billion for the fiscal ended June 2017

The amount has been calculated for the six month through Dec 31, said sources

The central bank's cost for printing notes rose by a staggering 135 per cent, provisions for transfer to contingency funds were up 14 times

Central bank to transfer Rs 30,659 as surplus to the govt in the current financial year

The dividend paid is the lowest since 2011-12

Rupee appreciation hits returns on RBI's foreign assets